Trust is an essential component of good social outcomes and effective economic performance. This is particularly true in environments such as the Prisoner's Dilemma or standard public-goods games, where the equilibrium in a one-shot case involves strictly uncooperative behavior. Evolutionary...

In this paper, we propose a new channel of contract design to boost efficiency. If deviating from one's own words induces a self-imposed moral burden, the optimal contracting procedure with regard to cheap talk shall assign the responsibility for installing the nonbinding promise in the contract...

Trust is an essential component of good social outcomes and effective economic performance. Reputation on the trustee's past behavior in the same role has proven to be greatly effective at raising the level of trust. In this study, we show that providing information on the trustee's past...